Caveat Emptor: Why Investors Need to Do Due Diligence on U.S. Treasury and Related Securities
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Caveat Emptor: Why Investors Need to Do Due Diligence on U.S. Treasury and Related Securities
Now added to the 2018 Annual Wrap Up Web Presentation:
Caveat Emptor: Why Investors Need to Do Due Diligence on U.S. Treasury and Related Securities
~ February 18, 2019 ~
I. Introduction
II. Which Securities and Financial Assets Are Affected by FASAB 56?
III. The Rating Agencies
IV. Laws Related to U.S. Monetary and Fiscal Policy
V. FASAB 56: Recent Events Leading Up to FASAB 56
VI. FASAB 56: The Final Statement
VII. FASAB 56: What Is the “National Security” Information That May Be the Subject of Modifications?
VIII. Existing Securities Laws That Have the Effect of Reducing Transparency for National Security Purposes
IX. The Post FASAB 56 World: Who Can Help Assess Credit, Risks, and Price?
X. The Post FASAB 56 World: What Is the Federal Credit?
XI. Conclusion
XII. Links
XIII. Appendices A & B
Excerpt:
“In this article, we explain, with reference to other materials available on The Solari Report site, that it is no longer prudent for the investor to rely solely upon primary and secondary securities dealers, the U.S. rating agencies, and mandatory disclosure by issuers to accurately assess the risks and values of certain securities. While we encourage investors to do their own due diligence, we also recognize that FASAB 56 eliminates any hope that the investor will be able to obtain sufficient information to accurately assess the credit and value of his or her holdings of U.S. Treasury and other securities whose values are affected by Statement 56 (i.e., a meaningful percentage of U.S. public and private equity and debt securities). ”
Full article here.
16 Comments
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Catherine, the darkness of FASAB 56 is in direct contrast to legislative transparency an ex-Wall Street lawyer, Caitlin Long (https://caitlin-long.com/about/), has been pushing at the individual state level (eg., recently Wyoming). As I understand her work, it is to provide an alternative legal/financial framework to the wildly broken system you describe.
You might consider her work as a constructive initiative toward better alternatives … a positive force bringing light to darkness.
Thanks – will take a look.
Catherine, we advocate that the people involved in the criminal enterprises which pass for government and business these days be shunned. The same standard should apply to the works wrought by those criminals. They have rigged, corrupted and broken all the markets. There is no longer either any transparency, or any meaningful price discovery. Investing in such circumstances is not rational. By investing in “markets,” we become part of the problem. We feed, aid and abet the evil and perpetuate the creatures that derive energy from it. I do not deny that shunning and getting out of the system is a drastic and difficult step, but the necessity of doing so is a reflection of how dire the situation has become. We can no longer watch our screens and “Tut-tut” while shaking our heads. It’s time to “Pull it!”
I agree. I believe a sizeable amount of assets are leaving through the back door. Which means when we buy a Treasury, we are exchanging an asset for an IOU that many of us are liable for – whether we live in Libya or in Camp Fire, California. And the creditors have an endless number of ways of collecting.
Catherine, we advocate that the people involved in the criminal enterprises which pass for government and business these days be shunned. The same standard should apply to the works wrought by those criminals. They have rigged, corrupted and broken all the markets. There is no longer either any transparency, or any meaningful price discovery. Investing in such circumstances is not rational. By investing in “markets,” we become part of the problem. We feed, aid and abet the evil and perpetuate the creatures that derive energy from it. I do not deny that shunning and getting out of the system is a drastic and difficult step, but the necessity of doing so is a reflection of how dire the situation has become. We can no longer watch our screens and “Tut-tut” while shaking our heads. It’s time to “Pull it!”
I agree. I believe a sizeable amount of assets are leaving through the back door. Which means when we buy a Treasury, we are exchanging an asset for an IOU that many of us are liable for – whether we live in Libya or in Camp Fire, California. And the creditors have an endless number of ways of collecting.
Masterful undertaking, Catherine..but scary! The average person simply does not know what to do with their money. While I know you cannot advise here, I feel that gold, silver, and land are it. Do you see a “Jubilee” or a “reset: coming? Many talking heads do, but they do not have the knowledge that you do concerning the Fed…….
Lauran:
The important thing is balance. There are arguments for assets in a wide variety of real things, including land and precious metals, depending on your unique circumstances. The people who are doing the best IMO are those how have created a solid business that is useful and cash flows. I do believe that stong companies and their stocks will make it through – but like all asset classes in is not without risk> The real problem is lawlessness. Lousy governance can destroy the value of all assets. So can environmental destruction that comes from lousy governance and culture or simply the planetary cycles – check out the post that Elizabeth just posted. in Subscriber input on the ravages of glysophate, etc.
Just make sure to invest first and foremost in yourself. Your good health and skills are what will see you through.
Catherine
I just read the article that you referred me to by Elizabeth, and I can tell you that it would be good for you to do an article on Glysophate and it’s harm. I understand it acts as a ‘binder”, and it is even put in many vaccines. I just braved the flu, rather than take the shot!..I hope you will have more articles on health and medicine as it evolves (or deteriorates) under government oversee!…Stay well, and thank you again……
Masterful undertaking, Catherine..but scary! The average person simply does not know what to do with their money. While I know you cannot advise here, I feel that gold, silver, and land are it. Do you see a “Jubilee” or a “reset: coming? Many talking heads do, but they do not have the knowledge that you do concerning the Fed…….
Lauran:
The important thing is balance. There are arguments for assets in a wide variety of real things, including land and precious metals, depending on your unique circumstances. The people who are doing the best IMO are those how have created a solid business that is useful and cash flows. I do believe that stong companies and their stocks will make it through – but like all asset classes in is not without risk> The real problem is lawlessness. Lousy governance can destroy the value of all assets. So can environmental destruction that comes from lousy governance and culture or simply the planetary cycles – check out the post that Elizabeth just posted. in Subscriber input on the ravages of glysophate, etc.
Just make sure to invest first and foremost in yourself. Your good health and skills are what will see you through.
Catherine
I just read the article that you referred me to by Elizabeth, and I can tell you that it would be good for you to do an article on Glysophate and it’s harm. I understand it acts as a ‘binder”, and it is even put in many vaccines. I just braved the flu, rather than take the shot!..I hope you will have more articles on health and medicine as it evolves (or deteriorates) under government oversee!…Stay well, and thank you again……
Are some banks, such as state banks, or credit unions such as a state university credit union, any safer than other banks for amounts over $250,000?. What about banks associated with brokerage account?
If wealth is destroyed, will it be destroyed fairly equally as a percentage across all asset classes including fiat currency. I like the idea of land as an asset class, but in the last depression people could not pay their taxes on their land. I think gold for this scenario may be appropriate, but I do know how to know if I can trust a dealer or how to find a trustworthy dealer.
Are some banks, such as state banks, or credit unions such as a state university credit union, any safer than other banks for amounts over $250,000?. What about banks associated with brokerage account?
If wealth is destroyed, will it be destroyed fairly equally as a percentage across all asset classes including fiat currency. I like the idea of land as an asset class, but in the last depression people could not pay their taxes on their land. I think gold for this scenario may be appropriate, but I do know how to know if I can trust a dealer or how to find a trustworthy dealer.